Management at Australian radio network Austereo have hit out at claims that Kyle Sandilands's counselling is a 'token gesture'.

Earlier this month, the controversial DJ was suspended from hosting duties for the second time in five weeks after sparking public outrage by commenting that Kath & Kim actress Magda Szubanski would lose more weight if she entered a concentration camp.

Following a review of Sandilands's comments, Austereo allowed the 38-year-old to keep his job but imposed a continuation on his suspension from on-air duties until October and ordered him to undergo counselling.